Is Brick-And-Mortar retail a thing of the past?

Is Brick-and-Mortar Retail a Thing of the Past?

In the spring of 2020, COVID-19 restrictions forced restaurants and retailers to close their doors or operate at limited capacity. Consumers shifted rapidly to online ordering, delivery companies struggled to keep pace, and many retailers closed locations and reduced their workforces. The media declared: brick-and-mortar retail was finished.

Six years later, the numbers tell a different story.

E-commerce is still growing, but it has not replaced the physical store. According to the U.S. Census Bureau, online sales accounted for 17.1% of total U.S. retail sales in the second quarter of 2026. In other words, in-person purchases still drive the remaining 81.5% to 83.5%. Capital One Shopping Research states that while Florida residents are top contributors to online sales volume due to our large population base, Floridian’s lean slightly more towards traditional brick and mortar stores than the average American. US Census Bureau reported that Florida’s digital market share tracks slightly lower than the national average due to the massive influx of brick-and-mortar retail traffic from tourism and a large retiree population.

The retail real estate market is telling a similar story. Colliers reported that the national retail vacancy rate held at 4.3% through the 4th quarter of 2025. In Southwest Florida, vacancy ended the year at 3.8%. Those are remarkably tight numbers, especially after years of headlines predicting a “retail apocalypse.”

That does not mean every retail property is thriving. Older malls and outdated big-box spaces continue to face challenges. Today’s demand is concentrated in well-located properties that offer convenience, visibility and easy access. Food service, medical and service-oriented businesses, health and beauty concepts, fitness users and “retailtainment” are helping drive leasing activity.

The most successful retailers are also no longer choosing between online and in-person sales. They are using both. A physical location can serve as a showroom, service center, pickup point, return hub and brand experience, all while supporting online sales.

At Loyd Robbins & Co., retail property is an important part of our commercial real estate practice. We assist customers with the sale and leasing of freestanding buildings, storefronts, shopping-center space, restaurant locations and redevelopment sites throughout the Sarasota area and Southwest Florida.

Brick-and-mortar retail is not a thing of the past. It has evolved!